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I am grateful for the opportunity to contribute to World of Labor. Labor income share is an important topic, and this article makes a timely entry as there is a growing concern over a global decline in the labor income share. I hope that policymakers and academics alike will find this article useful

Why did labor’s share of income decline among
low-skilled workers but increase among the high-skilled?

Globally, the share of income going to labor
(the “labor income share”) is declining. However, this aggregate decline
hides more than it reveals. While the labor income share has decreased for
low-skilled workers, this has been concurrent with an increase for
high-skilled workers. Globalization leading to a growing skill premium and
an increasing complementarity between capital and skill through the
advancement of technology explains the polarization of labor income shares
across the skill spectrum.